Workers on the production line at the new Ferrari NV E-building factory in Maranello, Italy, Friday, June 21, 2024.
Francesca Volpi | Bloomberg | Getty Images
ferrari Although many auto giants are facing pressure from the European auto industry, this is considered a special case in the European auto industry. U.S. tariff threat.
President-elect Donald Trump On Monday he vowed to impose steep tariffs on China, Canada and Mexico, one of his first actions in office. threaten Shaking up the auto industry’s supply chain and raising investor concerns about rising costs.
Trump’s proposed measures include a 10% tariff on all Chinese products entering the United States and a 25% tariff on all goods from Canada and Mexico.
Given that the news could cause auto stocks to fall major consequences For U.S. and European manufacturers, many have built factories and rely on Mexican auto parts suppliers.
Trump did not mention Europe when he first announced the tariffs, which is good news for EU policymakers, although the 27-nation bloc may worry that it is only a matter of time before Trump turns his attention to the region’s auto industry.
Ferrari, however, is expected to be immune to much of the impact.
“For Ferrari, it’s an exception, no matter what the tariffs are, they’re not going to start production in the U.S.,” Morningstar equity analyst Rella Suskin told CNBC via video call. Happened in Maranello, Italy.
“The problem for Ferrari is that if it were 10%, 20% or 30% (tariffs), then they could easily pass the price on to consumers, just given who they’re targeting and how expensive the car is already.”
Trump previously promised a package of measures to boost U.S. incomes 10% or 20% The imposition of tariffs on all goods entering the country has raised concerns in a range of industries that rely heavily on trade, including automobiles.
For Morningstar’s Suskin, even if the U.S. imposes tariffs of up to 30% on all goods from Europe, it may not stop potential customers from buying Ferraris. “It’s ridiculous, but it’s what it is,” she added.
A Ferrari spokesman had no immediate comment when contacted by CNBC.
“Less price sensitive than most people”
RBC Capital Markets global auto analyst Tom Narayan agreed, saying Ferrari does appear to be in a position to pass on any price increases if Trump follows through on his promise to raise tariffs. .
Thomas Besson, head of automotive industry research at Kepler Cheuvreux, said most analysts and investors believe the Italian automaker is unique among its European peers in this regard.
“Time will tell, but this may be the right thing to do,” Besson told CNBC via email.
The original Ferrari factory entrance in Maranello. The Emilia Romagna Grand Prix will be held this weekend at the Autodromo Internazionale Enzo e Dino Ferrari circuit in Italy.
David Davies – Pa Pictures | Pa Images | Getty Images
Ferrari has had a strong year, outpacing rival automakers in Europe. Shares in the Milan-listed company have risen more than 34% so far this year, significantly higher than those of companies such as France Renault Or German Mercedes-Benz Group.
“We do not expect Ferrari to establish a U.S. production base,” Oddo BHF automotive analyst Anthony Dick told CNBC via email.
“For brand reasons, but also (probably more importantly) industrial reasons, because it would require the group to establish a local supply base, which does not seem feasible for us,” he added.
“It is unclear at this stage how the tariffs will affect demand, but we can reasonably assume that Ferrari customers will be less price sensitive than most customers,” Dick said, noting that the group’s luxury car rivals would face similar tariffs. Tariff treatment.
“Porsches are a little different”
The prospect of additional US tariffs could be a ‘bigger hurdle’ for Germany Porschesaid Besson of Kepler Cheuvreux.
Just like Ferrari produces cars exclusively in Italy, VolkswagenPorsche, owned by Porsche, has traditionally produced its luxury models in Germany.
“The Porsche is a little different,” said Morningstar’s Suskin.
“They can pass on a 10 percent tariff, but a larger (tariff), like 30 percent, might be a little difficult to pass on to customers,” she continued.
On May 6, 2024, at the Porsche assembly plant in Leipzig, Germany, a worker inspected the quality of the new all-electric Porsche Macan.
Jens SchruteGetty Images News | Getty Images
“They can take advantage of parent company Volkswagen, which does have some spare capacity in the U.S., but they would need to invest quite a bit (capital expenditure) to create a dedicated production line for Porsche.”
Porsche shares have fallen about 26% so far this year.
A Porsche spokesman had no immediate comment when contacted by CNBC.
